When you bought/buy a used car, did you follow the Kelly Blue Book guide?
for the past months ive been searching for a used car and i noticed if i follow the Blue Book pirce guide, it's actually ALOT harder to find the "right" car. When i found the "right" car, the price is either too high or too low for the condition…according to the blue book.
Just wondering, did any of you follow the Blue book guide?
If you didnt follow the blue book, do you regret purchasing that car?
If you did follow the book, is there any problem that has occured which made you feel you hadnt followed the guide? For example : you wish you picked the other car
Kelley Blue Book is just a "guide". However a very good one. For instance, banks look at "book value" (Kelley value) when determining what a car is worth and therefore what amount they will finance.
So, if a car has a Kelley retail value of $15,000 and the dealership is trying to sell it at exactly $15,000 the bank will turn down the loan because after tax, title, tags, warranty, GAP, etc. you are WAY OVER the value of the new car.
Also, if you are trading a car in and you are "upside down" (you owe more than the car is worth) the difference is being added to the new vehicle loan which means that once again you are WAY OVER the new car's value and the bank won't do that.
This is why dealerships are always pushing you for "down payment." This brings down the amount you are asking the bank for and therefore the bank will say yes and the dealership doesn't have to lose money discounting the car!
Dealerships also look at the NADA (National Associationg of Dealer Auctions) to see what a car is going for on the auction circuit. This affects your trade-in value. For instance if Kelley Blue Book says your car is worth $5,000, but at auction there's 7 listed at $3,000, the dealership is NOT going to give you $5,000 because then they risk having to eat $2,000!
Bottom line. DO NOT pay full Kelley retail value for a car. Tell the dealership you'll pay a little over wholesale value. And know your trade-in value, but expect to get at least $500 below what Kelley says it's worth.
For tips on negotiating for a deal you can visit my site here:
http://www.1-800badcredit.com/car-negotiating-insider-tips.html
I sold cars for 3 years in Phoenix and know all the tricks of the trade! If you have any other questions feel free to email me and I'll answer them as best I can!
Good luck!
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that guide useless… it is only used to help car dealers rip off customers… i would never pay" book" value for a car
References :
The KBB is a great resource when shopping for a car. You just have to research the car you want and adjust the KBB to your research. Many cars will be more expensive because of a high demand. Great condition and great records are worth tons when buying a car.
I use KBB for every purchase and generally I pay more than the Excellent price because I understand that the BMW market is slightly over the book, especially for the M's.
References :
Kelley Blue Book is just a "guide". However a very good one. For instance, banks look at "book value" (Kelley value) when determining what a car is worth and therefore what amount they will finance.
So, if a car has a Kelley retail value of $15,000 and the dealership is trying to sell it at exactly $15,000 the bank will turn down the loan because after tax, title, tags, warranty, GAP, etc. you are WAY OVER the value of the new car.
Also, if you are trading a car in and you are "upside down" (you owe more than the car is worth) the difference is being added to the new vehicle loan which means that once again you are WAY OVER the new car's value and the bank won't do that.
This is why dealerships are always pushing you for "down payment." This brings down the amount you are asking the bank for and therefore the bank will say yes and the dealership doesn't have to lose money discounting the car!
Dealerships also look at the NADA (National Associationg of Dealer Auctions) to see what a car is going for on the auction circuit. This affects your trade-in value. For instance if Kelley Blue Book says your car is worth $5,000, but at auction there's 7 listed at $3,000, the dealership is NOT going to give you $5,000 because then they risk having to eat $2,000!
Bottom line. DO NOT pay full Kelley retail value for a car. Tell the dealership you'll pay a little over wholesale value. And know your trade-in value, but expect to get at least $500 below what Kelley says it's worth.
For tips on negotiating for a deal you can visit my site here:
http://www.1-800badcredit.com/car-negotiating-insider-tips.html
I sold cars for 3 years in Phoenix and know all the tricks of the trade! If you have any other questions feel free to email me and I'll answer them as best I can!
Good luck!
References :
Former car salesperson in Phoenix, AZ and current owner of http://www.1-800badcredit.com. Website designed to provide help, advice and solutions to people with bad credit and no credit.
I find KBB can price cars erratically, oftentimes too high. What I would do is check kbb.com, edmunds.com and nada.com and determine the price based on all three.
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